India called upon private firms to bolster investments in new coal-fired power plants to address a significant surge in electricity demand, aiming to bridge a projected 30-gigawatt additional requirement by 2030. This move comes despite mounting international pressure urging the cessation of construction for such facilities.

During a meeting in New Delhi, India's Power and Renewable Energy Minister, R K Singh, encouraged private companies to consider investing in coal projects, emphasizing the imperative to seize the growth potential, as reported by three sources present in the discussion.

This meeting between the Indian government and private investors precedes the upcoming U.N. climate conference, where France, supported by the United States, intends to propose a cessation of private funding for coal-based power plants, according to a Reuters report. The Indian Power Ministry has yet to respond to inquiries regarding this matter.

The share of private investment in India's power sector, which was on par or exceeding government investments until 2018, has now dwindled to 36% of the country's total installed capacity. Most ongoing coal-based capacity developments are primarily executed by state-owned entities, with Adani Power and JSW Energy being the only private firms undertaking such projects.

The reluctance of private companies to engage in new coal-based plant constructions stems from a lack of financing, especially in the absence of long-term power supply bids from consumers, a situation prevailing for over a decade. However, recent years have witnessed a significant surge in energy demand in India, fueled by increased economic activity, exceeding previous projections.

Singh highlighted new estimates projecting India's peak power demand to escalate to 335 gigawatts by 2030, a substantial increase from the current 240 gigawatts, conveyed by the three sources present at the meeting. The Minister emphasized that despite the addition of coal-based capacity, India remains committed to achieving its climate goals of transitioning to 50% non-fossil-based power capacity, attributing this shift to the concurrent integration of renewable energy projects.

Additionally, Singh conveyed the possibility of exploring funding support for such projects from state-run financiers like Power Finance Corporation and REC Ltd, seeking to potentially facilitate private firms' involvement in these ventures, as disclosed by one of the sources present. All sources requested anonymity as they lacked authorization to speak to the media.